Key Takeaways
- PayPal expands its Bitcoin services to U.S. business accounts, allowing them to buy, hold, and sell Bitcoin directly.
- Business owners can only transfer their Bitcoin to ‘eligible’ external wallets.
- New York State business clients are excluded from the service due to PayPal's compliance with the state's strict BitLicense regulations.
PayPal Expands Bitcoin Services to U.S. Businesses
PayPal now allows U.S. business accounts to buy, hold, and sell Bitcoin, expanding its Bitcoin offerings beyond retail users.
The move addresses increasing demand from business owners who want similar Bitcoin-related features to those offered to individual consumers.
This expansion represents a significant opportunity for PayPal to tap into a larger market within the Bitcoin space.
On-Chain Transfers and Third-Party Wallets
In addition to holding and selling it, U.S. merchants can transfer Bitcoin to ‘eligible’ third-party wallets using PayPal’s services.
The company did not elaborate what the definition of ‘eligible’ is in their statement.
This new feature enhances the flexibility for businesses in managing and utilizing their Bitcoin in external wallets.
Limitations in New York State and PayPal's Regulatory Position
The Bitcoin service will not initially be available to business clients in New York due to the state's stringent BitLicense regulations.
PayPal has both a BitLicense and a trust license from the New York Department of Financial Services but did not provide a timeline for service expansion in the state.
